A Terms-Of-Trade Index That Equals 150 Indicates That Compared to the Base

question 163

Multiple Choice

A terms-of-trade index that equals 150 indicates that compared to the base year:

• A) It requires a greater output of domestic goods to obtain the same amount of foreign goods
• B) It requires a lesser amount of domestic goods to obtain the same amount of foreign goods
• C) The price of exports has risen from $100 to $150
• D) The price of imports has risen from $100 to $150

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